Slide 1: FY24 Half-Year Results Presentation
FY24 Half-Year Results Presentation DECEMBER 2023 Creating shareholder value through the efficient operation of our businesses and long-term growth in our investments
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Schaffer Corporation Limited ACN 008 675 689 (“The Company”). This presentation is for information purposes only and is not a prospectus or product disclosure statement, financial product or investment advice or a recommendation to acquire Schaffer C
Slide 3: Organisation Chart
Organisation Chart MANUFACTURING GROUP INVESTMENTS JANDAKOT – SOUTH CONNECT AUTOMOTIVE LEATHER (83% OWNED) SFC (100%) AND GOSH CAPITAL (83%) JANDAKOT - ▪ Finishing ▪ Company Owned Property ▪ 100% Owned - Slovakia - Victoria, Australia ▪ Syndicated Investment Property ▪ A large strategic asset locate
Slide 4: Group Consolidated Financial Performance
Group Consolidated Financial Performance Half-Year ending December ($m) 1H24 1H23 % Change 1H24 Statutory NPAT1 increased 72.1% to $8.8m (1H23: $5.1m) Revenue $112.9 $83.5 35.3% Net Profit After Tax (NPAT)1 from: 1▪ Automotive Leather profitability increased to $7.8m, up Automotive Leather 1 $7.8 $4
Slide 5: Fully Franked Dividends
Fully Franked Dividends SFC is a consistent dividend payer ▪ The Board has declared a fully franked interim dividend of $0.45 per share, for shareholders on record on 8 March 2024, payable on 15 March 2024. 90 90 90 80 70 45 45 45 35 45 40 25 25 26 30 45 45 45 45 45 13 13 14 30 15 12 12 12 FY15 FY16
Slide 6: Cash Generated
Cash Generated Half-Year ending December ($m) 1H24 1H23 1 Reduction of Automotive Leather working capital NPAT 8.8 5.1 ▪ Net working capital reduced by $12.6m primarily due to lower Net unrealised pre-tax losses – Group Investments 2.4 4.2 hide inventory. Depreciation 4.3 4.0 2 Capital expenditure i
Slide 7: Group Net Debt Overview ($m)
Group Net Debt Overview ($m) MANUFACTURING GROUP INVESTMENTS Syndicated Automotive SFC Gosh Total Total All amounts in $m Jandakot Investment Leather Investments Capital Dec 23 Jun 23 Properties Type of Debt: Bank and other debt (20.8) (1.4) (12.2) (22.2) (7.8) (64.4) (71.4) Equipment finance (6.6)
Slide 8: Automotive Leather
Automotive Leather 1H24 revenues increased 48% to $93m (1H23: $63m), with NPAT1 increasing 64% to Half-Year ending December ($m) 1H24 1H23 $7.8m (1H23: $4.8m) as a major delayed program finally launched. Revenue $92.8 $62.8 Cash flow generation from operations from Automotive Leather of $23.7m excee
Slide 9: Delta
Delta Summary Half-Year ending December ($m) 1H24 1H23 ▪ Delta increased NPAT to $2.2m (1H23: $0.3m): Revenue $14.7 $14.0 o Improved operational efficiencies Segment NPAT $2.2 $0.3 o Prior year 1H23 margins and cashflows were impacted by design and engineering complexity on a large project. Outlook
Slide 10: Group Investments
Group Investments Pre-Tax Net Equity Value1 of $195.5m (June 23: $186.5m) or $14.40/share (June 23: $13.73/share) ▪ Pre-Tax Net Equity Value1 has increased by $100m since FY17. 1. Pre-Tax Net Equity Value = market value less debt (including syndicated property debt) 2. All values represent SFC’s sha
Slide 11: Group Investments
Group Investments Half-Year ending December ($m) 1H24 1H23 ▪ Group Investments represents a growing proportion of the Group’s underlying assets and valuation. Revenue $5.4 $6.6 Segment NPAT1,2 $0.5 $1.8 ▪ We continue to grow the division opportunistically with the objective of maximising shareholder
Slide 12: Group Investments – Property
Group Investments – Property Fugro Building West Perth, WA Hometown Cannington, WA Home Space, Tamworth, NSW 39 Dixon Rd Rockingham, WA Parks Centre Bunbury, WA Half-Year Results Presentation DECEMBER 2023 12
Slide 13: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate Aerial View – January 2024 Half-Year Results Presentation DECEMBER 2023 13
Slide 14: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate A large strategic property asset located between two freeways and 15 minutes south of the Perth CBD. South Connect – Jandakot Logistics Estate is well located to benefit from the increased demand for logistic and “last-mile” warehousing driven by the rapid
Slide 15: Jandakot – South Connect – Logistics Estate
Jandakot – South Connect – Logistics Estate Artist’s Impression; South Connect Logistics Estate, Jandakot Half-Year Results Presentation DECEMBER 2023 15
Slide 16: Group Outlook – 2H24
Group Outlook – 2H24 Outlook Risk Factors While the current environment has many potential risks, our manufacturing ▪ Delayed program launches for Automotive Leather operations should continue to perform well during 2H24. ▪ Adverse currency volatility for Automotive Leather ▪ Automotive Leather ▪ Br
Slide 17: Non-IFRS Financial Information
Non-IFRS Financial Information Schaffer Corporation Limited results are reported under As at Reconciliation of Net Debt ($000’s) International Financial Reporting Standards (IFRS) as issued by the Dec 2023 Jun 2023 International Accounting Standards Board. The Company Interest-bearing loans and borr
Slide 18: Appendix I - Group Investments – Pre-Tax Net Equity Value
Appendix I - Group Investments – Pre-Tax Net Equity Value1,2 FY18 FY19 FY20 FY21 FY22 FY23 HY24 HY24 HY24 Pre-Tax Net Equity Value1,2 ($m) ($m) ($m) ($m) ($m) ($m) ($m) Per Share % of Portfolio Property: Used by SFC Operations $11.4 $11.4 $9.7 $9.7 $9.7 $10.1 $10.1 $0.74 5% Jandakot –South Connect $
Slide 19: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio Current SFC Share of Notional Tax Net Equity Land Size SFC SFC Share of Address Description Ownership Structure Lettable Area Market Value on Capital Value After (sqm) Ownership % Debt ($m) (sqm) ($m) Gain ($m) Tax ($m) Property used by SFC Operat
Slide 20: Appendix II - Group Investments – Property Portfolio
Appendix II - Group Investments – Property Portfolio Current SFC Share of Notional Tax Land Size SFC SFC Share of Net Equity Address Description Ownership Structure Lettable Area Market Value on Capital (sqm) Ownership % Debt ($m) Value ($m) (sqm) ($m) Gain ($m) Development Sites Lot 706 Jandakot Ro